Food Department officials in Tamil Nadu is holding discussions with suppliers to reduce the quoted prices for ration dal, following concerns over inflated costs compared to other states. While suppliers initially quoted ₹90 per kg, they later agreed to bring the price down marginally to ₹88.50 during negotiations.
However, it has come to light that the same companies are supplying similar imported dal to the Gujarat government at ₹81 per kg. This discrepancy has raised serious concerns, as it could potentially lead to a loss of nearly ₹45 crore for the Tamil Nadu government for a total procurement of 60,000 tonnes.
According to a senior Food Department official, the Tamil Nadu Civil Supplies Corporation had floated a tender to purchase 60,000 tonnes of imported dal for distribution through ration shops. Some of the participating companies had quoted ₹90 per kg as the lowest price.
This figure is significantly higher than the prevailing open market rate of approximately ₹75 per kg. Allegations soon surfaced suggesting that the inflated price may have been aimed at benefiting select companies and facilitating kickbacks. Following media attention and public scrutiny, the procurement process was paused, and negotiations were reopened to bring down the cost.
Meanwhile, it was discovered that the same suppliers had agreed to provide the same dal to Gujarat’s Food Department for ₹81 per kg. During the renewed negotiations, Tamil Nadu officials confronted the suppliers with this data and questioned why they couldn’t offer a similar rate.
The suppliers, however, responded vaguely, citing “higher costs in Tamil Nadu” without providing a breakdown or justification for the price gap. Officials noted that no concrete explanation was offered regarding where the additional cost difference was going.
If the state proceeds with the revised ₹88.50 rate, it would pay ₹7.50 more per kg compared to Gujarat, amounting to a total excess expenditure of ₹45 crore. Officials emphasized the need for continued negotiations to bring the price in line with the Gujarat rate of ₹81 per kg to prevent unnecessary financial losses.
(With Inputs From Dinamalar)
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